It is not easy when it comes to getting your first home. This is because you have to save up for the down payment, apply for a mortgage and then do all the paperwork before finally moving in and exhausting all your savings on the furniture as well as appliances that will be needed in the house. There are actually easier means of getting this done without any hitch. Getting a home buyer grant is a good idea when it comes to this.
What is a home buyer grant?
The government initiative with the aim of helping more people acquire home to become homeowners and fewer people default on their mortgages is known as home buyer grants. They can help you with paying a lower down payment and sometimes not even having to pay a down payment at all as well as make it easier for you to qualify for lower interest rates which will make it easier for you to stay up to date on your monthly payments. There are various options you can choose from when it comes to applying for home buyer grants. We are going to look at some of the most popular and easiest ones.
When it comes t First-Time Home Buyers Grants and Programs
Good Neighbor Next Door
In qualification, this is one of the easiest home buyer grants. It is the United States Department of Housing and Urban Development that is responsible for running this program. Their major aim is to get productive members of the society in good neighborhoods so that they can assist their neighbors if they are ever in need such as during civil or any other disturbance. Emergency services such as paramedics, firefighters and law enforcement agents are the people that qualify for this grant.
Teachers also qualify for these grants since, while they don’t have the skills to neutralize a home invasion, they provide the education necessary to reduce the number of home invasions annually — thus protecting and educating the community all at once. In certain regions of your city known as revitalization areas, you could get a discount of up to 50% on the listed price for any specific home. If you’ve spent your life serving others and keeping the public safe, you could finally get a return on your investment by getting this grant that will give you your first home. Bear in mind that any termination for improper conduct such as extrajudicial killings or negligence causing death, you’re unlikely to get an approval.
HUD Dollar Home Program
These homes do not retail for an actual dollar. This is a way of representing how cheap they are. The United States Department of Housing and Urban Development offers these homes to low-income families at very cheap costs so they can get rid of excess inventory while helping people get their first house provided a foreclosed home has been on the market for six months or more.
It’s sort of a win-win for both the government and the recipient of the new home. It’s worth noting that some of these homes may be in undesirable areas seeing as no one has bought them since they were foreclosed half a year ago, but it’s still worth checking the home out. Perhaps the neighborhood is perfectly safe but just far away from all the good shopping malls and Starbucks joints leading to its availability.
In 2008, the real estate market collapsed. Since then, the Federal Housing Administration has been ensuring that no such event repeats itself. It has been more than 10 years since that time and they are yet to stop. Their aim is to make a lot of people become proud homeowners and also make it easier for people to afford their monthly payments to ensure that no collapse happen in the future. You could get a home loan with a down payment as low as 3.5% if your credit score meets the 580 mark.
That said, even if your credit score is below that, you aren’t out of luck just yet. The FHA loans accommodate those with lower credit scores. If your credit score is below 580 but at 500 or more, you will still be eligible for an FHA loan. The only issue is that your down payment will be at 10% rather than 3.5%, but that’s still a pretty fair price. It’s recommended that you raise your credit score to 580 or better before getting your FHA loan to qualify for the lower down payment. All the closing costs are added into the loan meaning you won’t have to cover them yourself upfront making the process easier, faster, and cheaper for you.
USDA Loans Programs
Yeah, it is the same USDA you are thinking about which the United States Department of Agriculture is. This department actually provides home loans too. The reason the federal farming agency is helping you buy a house may surprise you. The USDA which is in charge of everything agriculture has decided to take the initiative and fill up the rural areas of the country with productive members of society as opposed to letting the urban centers has all the fun and income.
These loans make it easier for low-income families to get homes on the cheap provided they’re in rural areas. It might not be the most fun life to live miles from the nearest shopping mall, but if you’re willing to make that sacrifice to get your own home, then the USDA housing loans might be the right option for you. You could even try your hand at farming once you get there — which is what the USDA hopes you’ll do after they give you a home for so cheap. You’ll make extra income and always have food on the table.
VA Loans Programs
Getting a VA loan could be a great way to buy your first home if you are a veteran. The sad truth is that many veterans do not actually own a home. The major reason for this is the fact that they were too busy serving their country and had no time to venture into business and grow their savings account. The Veterans Affairs Administration has been at work for some years now with the purpose of providing affordable loans to those who have spent a lifetime trying to protect the interests of our country.
The Veterans Affairs administration acquires its own funding meaning it’s available even during the government shutdowns that occur every now and then. The interest rates are low for a VA loan qualifying is easy, but the main benefit of these loans is the fact that you don’t have to give a down payment upon getting the loan. That’s right, you could pretty much get a loan without any upfront cost and just pay the monthly charges as if you were renting.
When it comes t Conclusion
To lighten up the cost of getting your first home, there are many ways you can go about achieving this. You could apply for one of these programs and get yourself a house of your very own without bankrupting yourself or falling into debt if you are a veteran, police officer, teacher or someone that really wants to live the Little House on the Prairie lifestyle.